Event: the company released its three-quarter report in 2023, with revenue of 370 million yuan in the first three quarters of 2023, an increase of 35.2% over the same period last year, and a net profit of 72.822 million yuan, an increase of 32.6% over the same period last year. In the single quarter of Q3, the revenue was 130 million yuan, up 32.4% from the same period last year, a decrease of 7.0% from the previous quarter; and the net profit from the home was 30.316 million yuan, up 30.2% from the same period last year and 37.5% from the previous year.

Fund-raising projects are progressing steadily, and production capacity construction is expected to support future development. In June 2023, the company's R & D and manufacturing headquarters project was officially launched. the total land area of the project is about 82000 square meters, and the total construction area is about 140000 square meters, which is 6 times more than the existing 3D printing industrial park, and the first phase investment is about 600 million yuan. for R & D headquarters and industrialization Tencent App Center and production expansion construction of material-increasing manufacturing equipment Including large industrial 3D printing equipment production line center, international innovation research center and new R & D laboratory, industrial 3D printing equipment printing service production line, R & D and commissioning workshop, international after-sales service center, etc., the project is expected to be completed in 2024. After the fund-raising project is completed and put into production, the production capacity will be significantly increased and the company's leading advantage will be expanded.

The improvement of the ability of cost control and the change of product structure lead to short-term pressure on gross profit margin. In the first three quarters of 2023, the company's gross profit margin was 53.2%, down 0.6 percentage points from a year earlier; Q3 was 51.8% in a single quarter, down 2.8 percentage points from a year earlier, unchanged from a month earlier. In the first three quarters of 2023, the company's period expense rate was 33.1%, down 1.6% from the same period last year; Q3 was 31.0% in the single quarter, 3.8% lower than the same period last year, and 3.5% lower than the previous quarter. In the first three quarters of 2023, the net interest rate was 19.6%, down 0.4 percentage points from the same period last year; Q3 single-quarter net interest rate was 23.3%, down 0.4 percentage points from the same period last year, and an increase of 7.5 percentage points from the previous quarter. The decline of comprehensive gross profit margin is mainly affected by the fluctuation of gross profit margin of different equipment products and the change of product structure.

The manufacturing market of adding materials is growing at a high speed, and the field of application is gradually broadened. At present, adding material manufacturing has been widely used in aerospace, mold manufacturing, medical research, automobile manufacturing, 3C and other fields, and continues to expand to other application fields. According to the annual global market size of Wohlers Associates,2022 is US $18.03 billion, an increase of 18.3% over the same period last year, the market size of the global manufacturing industry is expected to exceed US $100 billion in 2032, with a 10-year CAGR of 19.0%. In 2021, the global aerospace 3D printing market is 2.56 billion US dollars, + 30% compared with the same period last year, and the penetration rate is only 0.19%. The potential space is huge. According to Globenewswire,2022, the global automotive manufacturing market is worth US $2.2 billion, and is expected to grow to US $15.8 billion by 2032, with a 10-year CAGR of 21.8%. The company is the leader of domestic industrial-grade manufacturing equipment, covering aerospace, automotive, medical, mold and other fields, and is expected to fully benefit from the rapid growth of the industry.

Profit forecast and investment advice. It is estimated that the company's net profit from 2023 to 2025 will be 1.4,2.2,300 million yuan respectively, corresponding to EPS 0.34,0.52,0.72 yuan. The corresponding share price PE will be 95,62,45 times, and the compound growth rate of net profit for the next three years will be 44.1%. Combined with the company's three-year compound growth rate and the company's leading position in domestic industrial-grade manufacturing equipment, it will be covered for the first time and given a "hold" rating.

Risk tips: key core devices rely on imports, technical route substitution, fund-raising project progress is not as expected and other risks.